Analyst Michael Ulz from Morgan Stanley reiterated a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) and keeping the price target at $72.00.
Michael Ulz has given his Buy rating due to a combination of factors surrounding Rhythm Pharmaceuticals’ promising outlook. The anticipated positive results from the Phase 3 trial of setmelanotide for hypothalamic obesity (HO) are a significant driver. This expectation is based on previous successful outcomes in both pediatric and adult populations, which demonstrated substantial reductions in body mass index (BMI).
Furthermore, the unmet medical need for HO, characterized by rapid weight gain and insatiable hunger due to hypothalamic injury, presents a strong market opportunity as there are currently no approved therapies. Setmelanotide’s mechanism of action, targeting the MC4 pathway, supports its potential efficacy in reducing BMI. The analyst also highlights the low dropout rates in trials and the manageable safety profile of setmelanotide, marketed as Imcivree, which further reinforces confidence in the drug’s market potential and regulatory approval prospects.
Ulz covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Vir Biotechnology, and Alnylam Pharma. According to TipRanks, Ulz has an average return of -5.2% and a 35.94% success rate on recommended stocks.
In another report released on March 11, Stifel Nicolaus also maintained a Buy rating on the stock with a $78.00 price target.